The Capital Markets industry is ripe for disruption as participants cope with increasing competition and a stricter regulatory environment. Ecosystem firms are leveraging emerging technologies to support their transition to new and differentiating business/operating models that will enable efficiency efforts and profitability goals. However, rapid transformation also introduces the potential for significant security threats to critical components of the capital markets industry. This report explores the top-10 trends that industry participants will face in 2018 and beyond.

1. Top-10 Trends for Capital
Markets 2018
November, 2017

2. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 2
Ever-evolving Regulatory
Landscape
Seamless and Secure Data
Transmission Requirements
Encroaching Competition
Source: Capgemini Financial Services Analysis, 2017
Rise of FinTech, RegTech, and adoption of
Distributed Ledger Technology (DLT)
DLTs helping in efficient transition to
systems with greater liquidity, ease of
access, and security

3. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 3
Regulatory Mandates
Need for Data-Intensive
Analytics
Firms need to establish central
repositories for all risk sensitivities,
gathering data from different sources
followed by categorized storage
Source: Capgemini Financial Services Analysis, 2017
New data architectures emerge

4. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 4
Cost Savings
Increasing Regulatory Scrutiny
Burgeoning Structured and Unstructured Data
Solutions Focus
Personalized Offerings
Regulations and
Compliance
Operational Efficiency
Source: Capgemini Financial Services Analysis, 2017
Machine Learning (ML) and Natural Language Processing
(NLP) gain prominence

5. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 5
Emerging need for capital market firms to solve
complex operational inefficiencies
RPA delivers major control, speed and cost benefits
60.5%
Aggressive push in RPA
adoption with 60.5%
growth expected between
2014 and 2020
Source: Capgemini Financial Services Analysis, 2017; “Robotic Automation Market to Reach US$ 4.98 Bn by 2020”, GlobalNewsWire, March, 2015, accessed October, 2017 at https://tinyurl.com/y84c7tbw
Robotic Process Automation (RPA) adoption up

6. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 6
Regulatory Pressures
Need for scalable architecture
Changing Business Requirements
Cost Pressures
Macroeconomic Uncertainty
Source: Capgemini Financial Services Analysis, 2017
Capital market firms open up to public cloud-based
applications

7. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 7
Information Theft and
Business Disruption
Worsening Financial
Consequences
Unforeseen Risks with
New technologies
Private User
Information at Risk
Increase in Frequency
of Ransomware Attacks
Threat sharing is gaining momentum as a
cornerstone of cyber defense programs
Source: Capgemini Financial Services Analysis, 2017
Major financial institutions look to combat evolving cyber
threats

8. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 8
Inconsistent Data Management
and Governance
Business Needs and Regulatory
Oversight
Operational Efficiency
Requirements
Source: Capgemini Financial Services Analysis, 2017; Gartner, Smarter With Gartner, “How to Create a Business Case for Data Quality Improvement”, Susan Moore, January 9, 2017
US$9.7
million
per year
Average financial
impact of poor data
quality on
organizations
Data quality and governance evolves into a strategic function

9. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 9
Cost savings on IT
Infrastructure
Time to Market Pressure
Need for agility to execute strategic
business initiatives in capital market
firms is driving higher adoption of SaaS
solutions
Evolving regulatory and
business needs
Source: Capgemini Financial Services Analysis, 2017
Move toward SaaS solutions gains huge acceptance

10. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 10
Increasing Demand
of Real-Time Access
Time to Market
Pressures
Sophisticated Risk
Management
Requirements
Operational and Cost
Efficiency Needs
Source: Capgemini Financial Services Analysis, 2017
Integrated treasury management systems witness rapid
adoption

11. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved. 11
Need for Better Risk Management and Surveillance
Sharing and Collaboration of Insights
Size and Complexity of Market Data
It is imperative to enable the
transformation of massive
amount of data into useful and
actionable information through
analytics
Source: Capgemini Financial Services Analysis, 2017
Increasing focus on data analytics and visualization

12. Capital Markets Trends 2018| December 2017 © 2017 Capgemini. All rights reserved.
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